Land Contract Rules Indiana

Land contracts are a popular form of financing when it comes to buying and selling real estate in Indiana. However, if you are considering entering into a land contract, there are certain rules and requirements that you need to be aware of to ensure a smooth and legal transaction. In this article, we will take a closer look at the land contract rules in Indiana.

What is a Land Contract?

A land contract, also known as a contract for deed, is a form of seller financing where the buyer makes payments directly to the seller over time, instead of obtaining a traditional mortgage from a bank or other financial institution. In a land contract, the seller retains legal title to the property until the buyer pays off the full purchase price.

Land Contract Rules in Indiana

1. Written Agreement: A land contract in Indiana must be in writing and signed by both parties. The contract must include the purchase price, the payment schedule, and the interest rate.

2. Disclosure Requirements: The seller must provide the buyer with certain disclosures, including a notice of the buyer’s right to have the contract recorded, a statement of any liens or encumbrances against the property, and a disclosure of the risk of forfeiture in the event of default.

3. Payment Schedule: The payment schedule must be clearly outlined in the contract, including the amount of each payment, the due date, and the interest rate. In Indiana, the maximum interest rate that can be charged on a land contract is 10% per year.

4. Termination and Forfeiture: If the buyer fails to make the required payments, the seller has the right to terminate the contract and take possession of the property. However, the buyer has the right to cure the default and reinstate the contract within a certain time frame, typically 30 days.

5. Recording Requirements: In Indiana, land contracts must be recorded with the county recorder’s office in the county where the property is located. Recording the land contract ensures that the buyer’s interest in the property is protected against claims by other parties.


Land contracts can provide a flexible and accessible financing option for both buyers and sellers. However, it is essential to understand and comply with the land contract rules in Indiana to avoid any legal issues down the road. If you are considering entering into a land contract, it is highly advisable to consult with an experienced real estate attorney to ensure that your rights and interests are protected.